Cummins (NYSE:CMI) Reaches New 12-Month High - Here's Why

Key Points

• Cummins Inc. (NYSE: CMI) reached a new 52-week high with shares trading at $412.33, supported by positive analyst ratings and target price increases from several financial firms.
• The company's most recent quarterly earnings showed EPS of $6.43, surpassing estimates, while a quarterly dividend was also increased to $2.00, reflecting a payout ratio of 37.61%.
• Overall, 83.46% of Cummins' stock is now owned by institutional investors, indicating strong interest in the company's growth potential in the market.

Cummins Inc. (NYSE:CMI - Get Free Report) shares reached a new 52-week high on Thursday . The company traded as high as $409.34 and last traded at $412.33, with a volume of 27147 shares traded. The stock had previously closed at $405.27.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on CMI. Truist Financial boosted their price target on shares of Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a research report on Thursday, August 7th. Melius raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a research note on Wednesday, September 3rd. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Finally, Citigroup lifted their target price on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Nine research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $389.29.

Cummins Stock Up 1.7%

The business's 50 day moving average price is $375.00 and its 200-day moving average price is $336.77. The firm has a market capitalization of $56.77 billion, a PE ratio of 19.37, a P/E/G ratio of 1.91 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.21 by $1.22. The business had revenue of $8.64 billion for the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The business's revenue was down 1.7% on a year-over-year basis. During the same period in the previous year, the firm earned $5.26 EPS. As a group, equities research analysts forecast that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were paid a $2.00 dividend. This is a positive change from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.9%. Cummins's payout ratio is presently 37.61%.

Insider Activity

In related news, VP Robert Enright sold 1,860 shares of the company's stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $402.26, for a total transaction of $748,203.60. Following the sale, the vice president directly owned 955 shares of the company's stock, valued at $384,158.30. This represents a 66.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the sale, the vice president directly owned 7,693 shares in the company, valued at approximately $2,994,038.67. The trade was a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 26,039 shares of company stock worth $10,385,075 over the last 90 days. Company insiders own 0.41% of the company's stock.

Institutional Investors Weigh In On Cummins

Several large investors have recently added to or reduced their stakes in the business. NWF Advisory Services Inc. increased its stake in Cummins by 9.7% during the 2nd quarter. NWF Advisory Services Inc. now owns 733 shares of the company's stock worth $240,000 after buying an additional 65 shares during the period. SevenBridge Financial Group LLC increased its stake in Cummins by 23.1% during the 2nd quarter. SevenBridge Financial Group LLC now owns 9,968 shares of the company's stock worth $3,265,000 after buying an additional 1,870 shares during the period. Osaic Holdings Inc. increased its stake in Cummins by 59.3% during the 2nd quarter. Osaic Holdings Inc. now owns 44,454 shares of the company's stock worth $14,351,000 after buying an additional 16,546 shares during the period. American Trust increased its stake in Cummins by 1.6% during the 2nd quarter. American Trust now owns 10,110 shares of the company's stock worth $3,311,000 after buying an additional 161 shares during the period. Finally, Orion Porfolio Solutions LLC grew its holdings in Cummins by 7.2% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 10,592 shares of the company's stock worth $3,469,000 after acquiring an additional 707 shares in the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.

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